T108 Quality Assurance Surveillance Plan (QASP).pdf

QUALITY ASSURANCE SURVEILLANCE PLAN

(QASP)

For

T108 (ENGINE SUSTAINMENT SUPPORT

(Contract #: FA812421R0003)

1 February 2022

AFLCMC/LPS

Oklahoma City Air Logistics Complex (OC-ALC)

Tinker Air Force Base, Oklahoma

Rolls-Royce

*The Service Summary (SS) is releasable to the Contractor but the QASP is an internal

Government document. (Reference AFI 63-138, chapter 6)

COORDINATION

Quality Assurance Program Coordinator Date

Contracting Officer Representative Date

Contracting Officer Date

Program Manager**

Date

Date

**Signature constitutes approval of the QASP IAW AFI 63-138, paragraph 2.1.4

Table of Contents

1. Objective ……………………………………………………………………… 4

2. Goals of the Multi-Functional Team (MFT)…………………………………. 4

3. MFT Members and Their Responsibility ……………………………………. 4

3.1 Procurement Contracting Officer (PCO) and/or Administrative Contracting Officer (ACO)

Responsibility……………………………………………………… 5

3.2 DCMA/COR Responsibilities

3.3 Quality Assurance Program Coordinator (QAPC) Responsibilities

3.4 Program Manager (PM)/ Functional Service Manager (FSM) Responsibilities. 8

3.5 Contracting Officer Representative (COR) Management (i.e. Supervisor

Responsibilities

3.6 Defense Contract Management Agency (DCMA/ACO-Specific Responsibilities 10

4. Performance Assessment ……………………………………………………… 11

4.1 Procedures ………………………………………………………………… 12

4.1.1 Definitions of Major Findings & Minor Findings………………. 14

4.2 Methods of Surveillance …………………………………………………. 14

4.2.1 Monthly …………………………………………………………….. 14

4.2.2 100% Inspection ……………………………………………………. 14

4.3 Standard ………………………………………………………………….. 14

4.4 Surveillance of Non-Service Summary Items ……………………………. 15

4.5 Remedies for Non-Conformance …………………………………………. 15

4.6 Positive and Negative Incentives …………………………………………. 15

5. Performance Management…………………………………………………….. 15

5.1 Market Research ………………………………………………………….. 15

5.2 MFT Meetings ……………………………………………………………. 16

5.2.1 Performance Planning…………………………………………………… 16

5.2.2 MFT Goal………………………………………………………………... 16

5.3 Disputes …………………………………………………………………… 16

5.4 Initial Performance Review ………………………………………………. 16

6. Revisions to this Surveillance Plan

1. Objective. In support of this effort, the Contractor shall provide total engine program administration including sustaining engineering support & technical services, supply chain management support, engine overhaul & maintenance, on-wing eco power wash, and data affiliated with the services for the T108 engines to maintain serviceable worldwide spare engine levels for US Air

Force C-130J. The Contractor shall support all government efforts to meet requirements for ready, affordable, safe, and effective engines while reducing engine life cycle costs. The Contractor will provide all labor, materials, tools, equipment, parts, transportation, etc. required to fulfill the requirements of the Performance Work Statement (PWS).

• Performance of the contracted services will occur on site at government base locations and facilities, Keesler Air Force Base Biloxi, Mississippi

Channel Islands Air National Guard Station Oxnard, California

Harrisburg Air National Guard Base Middletown, Pennsylvania

Little Rock Air Force Base Little Rock, Arkansas

Dyess Air Force Base Abilene, Texas

Ramstein Air Base Rhineland-Palatinate, Germany

Yokota Air Base Fussa, Japan

Cannon Air Force Base Clovis, New Mexico

Hurlburt Field Mary Esther, Florida

Kirtland AFB Albuquerque, New Mexico

RAF Mildenhall Suffolk, England

Kadena Air Base Okinawa, Japan

Davis-Monthan AFB Tucson, Arizona

Moody AFB Valdosta, Georgia

Elmendorf AFB Anchorage, Alaska

Moffet Federal Air Field Mountain View, California

Quonset Point Air National Guard Station Quonset Point, Rhode Island

Gabreski Air National Guard Base West Hampton, New York

Patrick Air Force Base Florida

2. Goals of the Multi-Functional Team (MFT). The Multi-Functional Team will be established within 30 calendar days of contract award and will meet quarterly as required. The goals of this team are to manage this contract and provide an avenue to collectively work together to create a strong working relationship between the using Agency, the Government contracting office, and the contractor, while providing the highest level of contract performance and customer service.

3. MFT Members and their Responsibilities. The membership, goals and responsibilities of the MFT are outlined below.

1. Foster partnerships with industry to ensure exchanges of information among the service industry partners and other business experts occur. Ensure the key stakeholders participate in developing, implementing and executing the acquisition strategy.

2. Provide support to senior leadership as required (i.e., performance metrics, data, and briefings). Ensure correspondence and presentations are accurate and timely. Provide reports that provide early warnings of significant variances in cost, schedule, or contractor substandard performance to senior leadership.

3. Research the commercial market to ensure use of the most efficient and effective assessment methods, techniques, and best commercial practices in performance of the contract, especially with regard to contractor Quality Management System (QMS).

4. Develop, implement, and execute a performance-based acquisition strategy that meets the needs of the applicable functional activity, to include performance metrics that result in a higher level of contractor performance, fostering synergistic partnerships, accommodating changes or unforeseen mission needs, and leveraging commercial best practices. Ensure the acquisition strategy aligns with the mission performance needs and that the PWS and acquisition approach are designed to deliver the desired mission support results.

5. Manage risk to ensure mission performance is within cost and schedule constraints.

6. Maintain active participation on source selections and work to achieve an integrated assessment of the offeror’s proposal based on the evaluation criteria.

7. Develop, implement, and manage milestones to ensure the acquisition supports mission requirements within the approved funding baseline.

8. Develop a QASP that assesses the contractor’s complete performance with an emphasis on assessing the viability of the contractor’s accepted QMS. On a case-by-case basis, the

Chief of the Contracting Office may approve the use of an Award Fee/Incentive Plan (as applicable) in lieu of a QASP for service acquisitions greater than or equal to $100M. The plan must provide for comparable surveillance of services. For items not suitable for inclusion in the award fee or incentive plan, a limited plan may be developed. The Award

Fee/Incentive Plan should be tailored to the acquisition and include all criteria for monthly monitoring, evaluating, and reporting to the MFT, Requirement Owner, PM, and

CO.

9. Assess and manage contractor performance data, to include submitting CPAR reports.

10. Assist the mission owner in developing a well-defined contract requirement, development of acquisition and source selection strategy, and assessing risk in determining performance criteria.

3.1. PROCUREMENT CONTRACTING OFFICER (PCO) AND/OR ADMINISTRATIVE CONTRACTING OFFICER (ACO)

RESPONSIBILITIES.

1. Advise the MFT on Surveillance Plan development.

2. Appoints a Contracting Officer Representative (COR) via a COR Designation Memorandum, indicating their areas of responsibilities and limitation of authority and ensures that the COR, Contractor and Quality Assurance Program Coordinator (QAPC) are notified in writing of such.

3. Provides contract specific training for any COR appointed by the PCO.

4. Approves any variance to the COR’s surveillance schedule.

5. Reviews and coordinates on the COR’s monthly surveillance schedule

6. Reviews and coordinates on the monthly COR surveillance report in the month following the scheduled surveillance.

7. Maintains suitable records reflecting decisions regarding the acceptability of the requirements as well as actions to correct defects.

8. Requests re-performance and/or reduction of price of contract when services are not performed or do not meet contract requirements.

9. Determines that the amount withheld constitutes a reasonable estimate of the Contractor's potential liability.

10. Ensures that the withholdings represent an amount commensurate with the reasonable value of such services.

11. Ensures past performance inputs are prepared documenting any performance issues.

12. Includes in the contract file documentation identifying nonperformance and actions taken.

13. Keeps communication lines open with the Contractor regarding performance issues.

14. Terminates the COR Designation in writing, when appropriate, and forwards copies of COR

Termination to the COR, COR Supervisor and QAPC and notifies the Contractor.

15. Participates as a member of the MFT.

16. Participates as a member in providing inputs and documenting CPARs.

3.2. DCMA QUALITY ASSURANCE REPRESENTATIVE (QAR)/COR RESPONSIBILITIES.

e) Ensure a COR file is maintained with COR records (COR qualification where applicable, contract, modifications, minutes, invoices and payments, inspection results, QASP, Award Fee or Incentive Plan, etc.) and Memorandums for Record (MFRs) on significant issues relating to the contract as required in DoDI 5000.72. These documents are required to be managed in the

CORT.

f) Inform the CO in writing of any required changes to the contract scope/PWS.

g) Develop and publish a surveillance schedule of COR surveillance activities (label as For Official

Use Only) unless processes in the applicable Award Fee/Incentive Plan delineate specific methods of surveillance unique to the acquisition. Submit to PM/FSM and CO for review prior to the commencement of the surveillance period.

h) Develop and publish surveillance report of COR surveillance activities. Submit to PM/FSM and CO for review.

i) Draft Contract Action Reports (CARs) for submission to the PM/FSM for each area of contractual non-conformity, either immediately or at the end of each surveillance period (as determined by your QASP) and forward to PM/FSM for review and the CO for issuance.

j) Assist PM/FSM and CO in verifying adequate corrective actions are taken to resolve problems.

k) Notify the CO if there is high risk of the contract costs exceeding the amount programmed (if no PM is assigned).

l) Assist CO to validate the accuracy of invoices submitted by the service provider prior to the government paying for services.

m) Ensure a CPAR is accomplished no less than annually. The CO may determine an out of cycle CPAR is required to address performance concerns.

n) Complete all COR required training.

o) Provide technical support to the PM/FSM and CO and assist MFT in developing performance requirements in pre-award activities when requested.

p) Never direct contractor’s work or the re-performance of work, assist the contractor in any task, advise the contractor on how to accomplish any task, change the contract, or interpret the contract, but rather observe and report on contractor compliance with contracted requirements.

q) Pre-award process: Assist the CO and MFT in determining (QMS) requirements being mindful of the requirements of FAR Parts 12, 46, 52.212-4(a), 52.246, Chapter 6 and the PWS. This list is not all encompassing but CORS are to communicate with their contracting officers concerning the specific FAR Parts that affect their requirement. CORs will aid in assessing contractor submitted QMSs for congruence with predetermined quality system requirements. Any proposed and accepted QMS exceeding the minimum Request for

Proposal (RFP) PWS requirements shall be made part of the resultant contract/task order at the contractor’s proposed rate, in a way that does not reveal the contractor’s proprietary information.

r) Post-award process: Ensure Contractor’s accepted QMS complies with contract requirements.

In post award, CORs need to place special emphasis in ensuring the contractor’s QMS is being followed as written, plus is effective in bringing about the desired results – performance equal to or greater than the SS metrics, plus an inspection and corrective action program that identifies and fixes issues without having to be identified by the Government.

s) Assist the MFT in developing a QASP or Award Fee/Incentive Plan, as applicable, prior to source selection that effectively measures and evaluates performance-based activity throughout the life of the functional contract requirement. CORs ensure the QASP is updated to ensure it reflects any contract changes.

t) Promptly report performance issues to the CO in writing.

u) Draft a CPAR evaluation for contractor performance when designated as the Contractor

Performance Assessment Reporting System (CPARS) Assessing Official Representative (AOR) for a contract or task order.

v) If functional SMEs are utilized, develop a plan to collect surveillance documentation from all

SMEs for consolidation into a single monthly surveillance report.

w) If a SME identifies an area of concern regarding the conformance of the contractor’s performance, verify the SMEs concerns and document any contractor non-conformance of the contract requirements.

3.3. QUALITY ASSURANCE PROGRAM COORDINATOR (QAPC) RESPONSIBILITIES.

1. Will assist the PCO and/or PCO Designee in providing Contract Specific Training per paragraphs 1.5.1 – 1.5.6 of AFFARS MP 5301.602-2(d) and/or Refresher Training regardless of provider for any OC-ALC AFLCMC/LPS COR, upon request.

2. Provides training for COR Management.

3. Supports the MFT in the development of contract requirements specifically to ensure that requirements are clearly stated and enforceable.

4. Offers advice on development for the Service Summary and Surveillance Plan.

5. Participates as a member of the MFT.

3.4. PROGRAM MANAGER (PM)/ FUNCTIONAL SERVICE MANAGER (FSM) RESPONSIBILITIES.

1. Execute management and oversight for the delivery of contractually acquired services.

2. Specifically, identify those services within a requirement that are mission essential IAW DFARS

252.237-7023. (i.e. FSM, which is the same as FC/FD, only responsibility)

3. Keep up-to-date on mission changes that may drive the need for a contract modification.

Coordinate with and seek advice from the CO on a possible need for a modification based on changes within the functional mission that could affect the performance requirements of the contract.

4. Is responsible, in conjunction with the CO, for addressing QMS non-conformities IAW paragraph 6.3 of AFI 63-138.

5. Approve QASP.

6. Ensure a Contractor Performance Assessment Report (CPAR) is accomplished no less than annually by the COR. If the program is an ACAT program where services are embedded, the

PM is responsible for accomplishing the CPAR.

7. Ensure assessments are consistent with the monthly surveillance reports.

8. Establish a tracking procedures to ensure MFTs are established and led by a PM or FSM as required in DoDI 5000.74.

9. Establish, lead and maintain MFT through the course of the acquisition (pre and post award).

10. Establish a governance to ensure a CPARS Assessing Official (AO) and Assessing Official

Representative (AOR) is identified. During the assessment process, provide a perception of the Contractor's overall performance. In some instances this may require the PM AND/OR

FSM to be either the AO or AOR.

3. 5. CONTRACTING OFFICER REPRESENTATIVE (COR) MANAGEMENT (I.E. SUPERVISOR)

RESPONSIBILITIES.

1. Upon request from PCO, prepares COR nomination package.

2. Ensure prospective COR understands importance of performing their designated functions.

3. Ensure the COR will be afforded the necessary resources (time, supplies, equipment and opportunity) to perform their designated functions.

4. Ensure that performance of the designated functions will be addressed as part of the

COR’s annual performance appraisal.

5. Solicit input on performance of COR duties from the PCO.

6. Ensure COR completes required training prior to award or prior to their designation as a COR if appointed after contract award.

7. Identifies mission essential services (i.e. Functional Commander only responsibility).

8. Participates as a member of the MFT.

9. Participates as a member in providing inputs and documenting CPARs.

10. Review and approve COR nominations via the Contracting Officer Representative Tracking (CORT)

Tool (Special Access Programs are exempt from this requirement) at https://wawf.eb.mil. In order to meet the technical experience requirements of FAR 1.602-2(d)(3) and DoDI 5000.72, Enclosure 5, paragraph 3, COR supervisors ensure the COR nominee has relevant technical, professional, or administrative qualifications within the area to be surveilled by both training and experience commensurate with the required COR responsibilities prior to nominating an individual to the CO for COR duties.

11. Annually review the COR’s qualifications and contract surveillance files for accuracy and completeness.

12. When required by the CO, ensure CORs submit their OGE Form 450 Confidential

Financial Disclosure Report and annual training in a timely and accurate manner.

13. Evaluate the individual’s performance as a COR and solicit feedback from the CO to include in the overall evaluation. Evaluation of CORs performance occurs if the COR is a dedicated full-time, part time or if the CORs duties are assigned as additional responsibilities.

14. Functionally align CORs under the PM/FSM, when possible.

15. Review problem areas identified by COR to facilitate COR/CO coordination to resolve problems.

16. Review contractor performance documentation prepared by COR personnel to ensure performance is compatible with contract objectives.

Combating Trafficking in Persons. IAW DFARS PGI 222.17, the COR shall pursue, as appropriate, the following methods of monitoring the contractor's performance regarding trafficking in persons such that non-compliances with FAR clause 52.222-50 are brought to the immediate attention of the PCO:

1. Keep the lines of communication open with the Contractor. At the Post-Award conference, remind the Contractor of his contractual responsibilities to notify the government if the contractor receives notification of any alleged violations to this policy or if actions have been taken against the contractor employees, subcontractors or subcontractor employees pursuant to the clause.

2. When appropriate, encourage contractor to complete Human Trafficking Awareness

Training.

3. Encourage the Contractor to take steps to investigate and eliminate slavery and human trafficking in their supply chains and to publish information for consumer awareness.

4. Periodically access the Department of State's Trafficking in Person (TIP) website for updates and to view the latest reports. https://ctip.defense.gov/#.

3.6 DEFENSE CONTRACT MANAGEMENT AGENCY (DCMA)/ACO-SPECIFIC RESPONSIBILITIES.

1. Performs contract administration as defined in Federal Acquisition Regulation (FAR) Part 42 and

DCMA Guidebook as needed and as authorized by the PCO.

2. Performs inspections and acceptance on all Contract Line Items (CLINs) that are inspection/acceptance at origin IAW the FAR clause and the DCMA Guidebook.

3. Initiates and monitors corrective actions given to the Contractor during the performance of the contract.

4. Keeps PCO informed of the corrective actions that pertain to the contract.

5. Notifies, when necessary, the PCO of any potential delays and any Contractor performance that poses risks to the completion and quality of the contract.

6. Participates as member of the MFT.

7. Participates as a member in providing inputs and documenting CPARs.

*FILE SHOULD INCLUDE A COPY OF THE CONTRACT/ORDER AND ALL MODIFICATIONS (UNLESS READILY AVAILABLE

ELECTRONICALLY); A COPY OF COR DESIGNATION MEMORANDUM (IF APPLICABLE); CORRESPONDENCE BETWEEN YOU

AND THE CONTRACTOR; COPIES OF CORRESPONDENCE TO OR FROM PCO/ACO; MINUTES OF ALL MEETINGS; COPIES OF

ALL INVOICES SUBMITTED AND PAID; AND ALL OTHER DOCUMENTATION OF ACTIONS TAKEN BY QAR/COR.

https://ctip.defense.gov/

4. Performance Assessment.

The required performance objectives can be found in the Service Summary in the PWS. The contractor service requirements are summarized into performance objectives that relate directly to the mission essential items. The performance threshold describes the minimum acceptable levels of service for each requirement. The contractor shall be aware that the absence of any contract requirement from the service summary does not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract.

Method of Surveillance

The Contractor shall maintain Federal Aviation Authority (FAA) certification for the R391 propellers/nacelles/T108 engines/LRUs and provide base level, depot level, and supply support services to establish and maintain minimum metrics below. Engine metrics will be calculated IAW AFMAN 20-116.

Repairs excluded for cost purposes do not affect the metrics below. All engines and propellers are considered as part of this calculation, whether installed or uninstalled, serviceable or unserviceable. The metric is based on conditions recognized at the morning meeting and committed to record. The metric is measured daily, NLT at the end of each business day and then averaged for each month’s availability.

Contractor shall send daily activity reports to the PO actuary for CEMS input. The information will be validated each Thursday during the IPT meeting. The metric requirements will apply to both TMS’s, T108- RR-100 and the T108-RR-101 unless otherwise specified.

The metrics for War Readiness Engines (WRE) will be applied to assess both TMS’s individually.

WRE net serviceable engine ranges for each TMS will be provided to the Contractor as early as the spring Maintenance Planning Working Group (MPWG) and No Later Than (NLT) 10 business days prior to start of the Fiscal Year (FY) (1 Oct). Each year the Contractor’s performance will be evaluated monthly, starting on the Period of Performance (PoP) anniversary date (1 Feb) for a period of 12 consecutive months. The Contractor’s performance will be computed and tracked via CEMS. Contractor’s performance results will be recorded each week on Thursday, except for the last Thursday of each month. On the last Thursday of the month, the average of all Thursdays for the month will be reported. Each week, the USG will provide a report to the Contractor detailing WRE status.

Base Stock level (BSL) metrics will be applied to assess both TMSs individually. BSL on hand engine range for each TMS will be provided to the Contractor as early as the spring Maintenance Planning Working Group (MPWG) and NLT 10 business days prior to start of the FY (1 Oct). Each year the Contractor’s performance will be evaluated monthly, starting on the PoP anniversary date (1 Feb) for a period of 12 consecutive months. The Contractor’s performance will be computed and tracked via CEMS.

Contractor’s performance results will be recorded each week on Thursday, except for the last Thursday of each month. On the last Thursday of the month, the average of all Thursdays for the month will be reported. Each week, the USG will provide a report to the Contractor detailing BSL status.

Mean Time Between Removal (MTBR) metrics will NOT be applied separately for each TMS on the 5-year base. Both TMSs will be measured together by a single metric.

USG will provide Propeller Availability performance ranges for each aircraft category as early as the spring MPWG and NLT 10 business days prior to start of the FY (1 Oct). Each year the Contractor’s performance will be evaluated monthly, starting on the PoP anniversary date (1 Feb) for a period of 12 consecutive months. The Contractor’s performance will be computed and tracked via daily reports provided by the Contractor. Contractor’s performance results will be recorded each week on Thursday, except for the last Thursday of each month. On the last Thursday of the month, the average of all Thursdays for the month will be reported.

o Mean-Time Between Removal (MTBR) = Green Status = Quarterly minimum average of

4000 flying hours

Metric Methodology: MTBR = Quarterly minimum average of 4000 Engine Flying

Hours for the fleet / number of engine removals, where EFHfleet and number of engine. MTBR will be calculated quarterly for all T108 engines, using a four-quarter rolling average to smooth any seasonal variation. The USG will provide the Contractor with a quarterly status on the last Thursday of each quarter.

T108-RR-100 (40/50 Kva Generator Configuration) o War Readiness Engines (WRE) level = Green Status = Monthly WRE is between 100% and

125% of net serviceable engines IAW AFMAN 20-116 (Example: Current T108-RR-100 negotiated WRE: 21 – 26.5 net serviceable engines)

WRE Metric Methodology: Monthly average of net serviceable engines = Sum of weekly snapshots / number of weeks in month IAW AFMAN 20-116, reported by

USG on the last Thursday of each month o Base Stock Level (BSL) = Green Status = Monthly BSL on hand assets are greater than or equal to 90% IAW AFMAN 20-116 (Example: Current T108-RR-100 Negotiated BSL:

minimum average of 34 engines on hand per month) o Metric Methodology: On hand BSL (Monthly Average) = Sum of Weekly Snapshots / the number of weeks in month IAW AFMAN 20-116, reported by USG on the last

Thursday of each month

Metric Computations: On Hand BSL (Weekly Snapshot) equals the Total Quantity

(Qty) NET on Hand + Total Qty Serviceable Due-in + Total Qty Repairable Due-in.

Serviceable due-ins will be in serviceable built-up status. Sum of the on hand BSL

(monthly average) / the number of weeks in month o (This metric will not be used on the 5 year base period and is anticipated to be used on the option periods that will be negotiated at a later date) Mean-Time Between Removal

(MTBR) = Green Status = Quarterly minimum average of 4000 flying hours

Metric Methodology: MTBR = Quarterly minimum average of 4000 Engine Flying

Hours for the fleet / number of engine removals, where EFHfleet and number of engine. MTBR is calculated quarterly for the engine’s TMS, using a four quarter rolling average to smooth any seasonal variation. The USG will provide the Contractor with a quarterly status on the last Thursday of each quarter.

T108-RR-101 (60/90 Kva Generator Configuration) o War Readiness Engines (WRE) level = Green Status = Monthly WRE is between 100% and

125% of net serviceable engines IAW AFMAN 20-116 (Example: Current T108-RR-101 negotiated WRE: 21 – 26.5 net serviceable engines)

WRE Metric Methodology: Monthly average of net serviceable engines = Sum of weekly snapshots / number of weeks in month IAW AFMAN 20-116, reported by

USG on the last Thursday of each month o Base Stock Level (BSL) = Green Status = Monthly BSL on hand assets are greater than or equal to 90% IAW AFMAN 20-116 (Example: Current T108-RR-101 BSL: minimum average of 34 engines on hand per month)

Metric Methodology: On hand BSL (Monthly Average) = Sum of Weekly Snapshots / the number of weeks in month IAW AFMAN 20-116 reported by USG on the last

Thursday of each month

Metric Computations: On Hand BSL (Weekly Snapshot) equals the Total Quantity

(Qty) NET on Hand + Total Qty Serviceable Due-in + Total Qty Repairable Due-in.

Serviceable due-ins will be in serviceable built-up status. Sum of the on hand BSL

(monthly average) / the number of weeks in month o (This metric will not be used on the 5 year base period and is anticipated to be used on the option periods that will be negotiated at a later date) Mean-Time Between Removal

(MTBR) = Green Status = Quarterly minimum average of 4000 flying hours

Metric Methodology: MTBR = Quarterly minimum average of 4000 Engine Flying

Hours for the fleet / number of engine removals, where EFH fleet and number of engine. MTBR will be calculated quarterly by engine TMS, using a four quarter rolling average to smooth any seasonal variation. The USG will provide the Contractor with a quarterly status on the last Thursday of each quarter.

o R391 Propeller Availability:

o WC-130J (Metal) Propeller Availability: = Green = Monthly propeller availability is greater than or equal to 93.0% o C/EC/HC/MC-130J (All Others) Propeller Availability: = Green = Monthly propeller availability is greater than or equal to 92.3%

Metric Methodology:

o Propeller Availability = (Total Qty of USAF Propellers - Total # of Non-Taskable

Propellers) Reported by the USG on the last Thursday of each month

Performance Objective

PWS Para. Performance Threshold

Oversight Method of Surveillance

SS-1 T108-RR-100

Engine Availability

1.5 T108-RR-100 -

War Readiness

Engines (WRE) level = Green =

Monthly WRE is between 100% and 125% of net serviceable engines as reported annually by USG

Appointed

COR

100% Inspection

SS-2 T108-RR-100

Base Stock Level (BSL)

1.5 T108-RR-100 -

Green Status =

Monthly BSL on hand assets are

Appointed

COR

greater than or equal to 90% as

SS-3 T108-RR-101

Engine Availability

1.5 T108-RR-101-War

Readiness Engines

(WRE) level =

Green = Monthly

WRE is between

100% and 125% of net serviceable engines as reported annually by USG

Appointed

COR

100% Inspection

SS-4 T108-RR-101

Base Stock Level (BSL)

1.5 T108-RR-101-

Green Status =

Monthly BSL on hand assets are greater than or equal to 90% as

Appointed

COR

100% Inspection

SS-5 WC-130J

Propeller Availability

1.5 Maintain monthly

minimum of

93.0% WC-130J

Propeller

Availability

Appointed

COR

SS-6 C/EC/HC/MC-

130J (All Others) Propeller Availability

1.5 Maintain monthly

minimum of

92.3% Propeller

Availability

Appointed

COR

SS-7 Engineering Services Response Time

4.5 Priority 1: initial

assessment 100% on time

Priority 2-3: initial assessment 90% on time

Appointed

COR

100% Inspection

SS-8 Quality of CDRL’s deliverables

4.23.1 No more than 2

technical errors;

No more than 5 minor errors within the deliverable submission; No more than one (1) rework per submission; No more than three

(3) total reworks allowed per contract year.

Appointed

COR

100% Inspection

SS-9 Timeliness of

CDRL

deliverable

4.23.2 No more than 2

late submission(s) of deliverables per the period of performance.

Resubmit the

CDRL item within

10 business days.

Appointed

COR

4.1. PROCEDURES.

Depending upon the PWS service requirements, the MFT determines if an overall monthly or quarterly surveillance schedule is warranted. Prior to executing a monthly/quarterly inspection schedule (i.e. see paragraph 4.4 for information regarding review of non-service summary items), CORs must coordinate the schedule through the PM and/or FSM and CO NLT the duty day before the scheduled surveillance period begins. After completing each scheduled surveillance, CORs must request a Contractor representative to initial the completed form in order to ensure the Contractor is aware the surveillance took place and was made aware of any noted defects in the surveilled service. If the Contractor does not meet a SS performance threshold or other PWS or QMS derived standard, CORs may draft

Corrective Action Reports (CARs) for addressing areas of contractual non-conformity and forward to the

PM and/or FSM and CO for review. Based upon the surveillance schedule, CORs will coordinate and submit a monthly or quarterly report of all scheduled surveillance through the PM or FSM and submit to the CO NLT the 5th work day of the month following the scheduled surveillance. The monthly/quarterly surveillance report format is determined by the COR, PM and/or FSM and CO. The COR shall document

PM and/or FSM and CO coordination. The COR shall identify any scheduled inspections not accomplished during a surveillance period in the monthly/quarterly surveillance report as not completed and why the surveillance was not completed. In such cases, a statement from the PM and/or

FSM and QAPC/CO approval for the variance is required. The government COR will periodically perform inspections to ensure Contractor compliance with the appropriate paragraphs of the CET and will record the results of inspections, noting the date and time. If inspection indicates a performance threshold is not met, the COR will notify the Contractor and the contracting officer of the deficiency for correction.

The Contractor shall be given a reasonable time after notification to correct the unacceptable performance if such correction is possible. The length of time allowed to correct the problem will depend upon the requirement and the deficiency, and the Contractor will be notified by the PCO of the time allowed for correction when the deficiency is reported to the Contractor.

The COR will not consider the services complete until all deficiencies have been corrected. Deficiencies not corrected or estimated dates of completion that are not acceptable to the COR will be forwarded to the PCO for action.

Performance of the contracted services will occur at a contractor facility. The COR will certify services rendered by the Contractor under the applicable provisions of the contract.

Upon notification from the contractor that the defect has been corrected, the COR will re- inspect the area/task associated with the customer complaint or Corrective Action Report that was issued by the

Government. The COR will verify the root cause and corrective/preventative actions submitted by the contractor are effective and prevent reoccurrence.

Corrective Action Report (CAR).

If the COR identifies a service summary performance objective that does not conform to the applicable performance threshold, the COR may draft a CAR for addressing areas of contractual non-conformity.

The COR will forward a copy of the CAR to the PM and/or FSM and CO for review. The COR identifies if the non-conformity is a minor, major, or critical non-conformity. The CO makes the determination on whether to issue the CAR to the Contractor. Contractor responses to CARs require identification of root cause, corrective action, follow-up actions, and get-well date. The CO, in consultation with the PM and/or FSM and COR assesses the contractor’s response for adequacy. Note, all PWS requirements are subject to surveillance; therefore, CARs are not limited to service summary performance objectives and may apply to non-service summary items in instances threatening mission accomplishment.

Technical/Functional support experts (i.e. PM, MAJCOM/DRU or base level subject matter expert) may be used to validate the technical/contractual/legal merits of the non-conformity and the adequacy of the contractor’s get well plan. Once a contractor fails to meet a service summary standard, the COR does not need to wait until the end of the performance period to draft a CAR. In order to manage corrective action suspense’s and subsequent contractor responses, the COR will establish a tracking system for corrective actions that includes date COR submitted CAR to PM and/or FSM, date reviewed by PM and/or FSM, date reviewed by CO, date issued by CO, date issued by CO, contractor’s identified root cause, proposed corrective action, contractor follow-up actions, and get-well date. A computer-generated CAR may be used, provided the information on the CAR remains the same. See attached CAR and instructions for filling out contained at the end of this document.

4.1.1. DEFINITIONS OF MAJOR FINDINGS & MINOR FINDINGS.

Major Findings. Major findings are contract non-conformances which are considered critical or major.

IAW FAR 46.101, a major non-conformance means a non-conformance, other than critical, that is likely to result in failure or reduce the usability of the services for their intended purpose. A critical non-conformance means a non-conformance that is likely to result in a hazardous or unsafe condition for individuals using, maintaining, or depending upon the services; or is likely to prevent performance of a vital agency mission. If at any time QAR/COR identifies a condition as having a significant adverse effect on the quality of the activity, such as those stated below, the QAR/COR shall document their findings and notify the Contracting Officer immediately in writing (email is acceptable).

A. Contractor failure to meet a Performance Threshold.

B. Failure to provide adequate corrective action to preclude reoccurrence of Government identified findings.

C. Failure to provide corrective action to deficiencies identified by the Contractor within a prescribed suspense period.

D. Any failure to adhere to security and/or safety regulations that results in a security or safety incident.

Minor Findings. IAW FAR 46.101, a minor non-conformance means a non-conformance that is not likely to materially reduce the usability of the services for their intended purpose, or is a departure from established standards having little bearing on the effective use or operation of the services. When the

QAR/COR identifies a minor finding, the QAR/COR shall document the findings, but is not required to notify the PCO. However, if the same minor finding is repeatedly identified, it may be an indication that a major finding is occurring, or has occurred, because the Contractor has not taken proper steps to prevent recurrence. In this case, the QAR/COR shall notify the PCO in writing (email is acceptable).

4.2. Methods of Surveillance. 1) 100% Inspection,

4.2.2. 100% Inspection. All deliverables (production, reports, etc.) will be inspected 100% for errors and omissions.

4.3. STANDARD.

The first corrective action required of an individual service not meeting contract requirements is the re-accomplishment of the service at no charge to the government. COR documentation of the services not meeting contract requirements denotes the contractor has to re-perform the service. However, upon advice of the technical/functional activity and the nature of the service, the CO may pursue other options. Recurring discrepancies during the reporting period which bring the performance threshold below the acceptable level will be recorded and reported to the PCO for appropriate action. Additionally, if the same discrepancy(ies) occurs repeatedly throughout different reporting periods, this will reflect upon the Contractor's performance. The COR will annotate the unacceptable performance and notify the

PM and/or FSM and PCO in order to address the problem areas with the Contractor. In those instances where re-performance is not possible, the government can require the contractor to take necessary actions to ensure future performance of a service meets contract requirements. In such instances, the CO should require the contractor to develop a plan that ensures future performance of that service meets contractual requirements. In addition, the CO may seek consideration for any services not provided or that do not otherwise meet contractual requirements. Typically, re-performance applies to a single performed service but can apply for a series of services covered under a service summary performance objective over a monthly or quarterly performance period.

4.4. SURVEILLANCE OF NON-SERVICE SUMMARY ITEMS.

The COR will develop a monthly/quarterly surveillance schedule for review/approval by the PM/FSM and

CO NLT one duty day before the scheduled surveillance is to begin. The surveillance schedule shall be composed of a review of all service summary items and at least ten percent of non-service summary items but not more than twenty percent.

4.5. REMEDIES FOR NON-CONFORMANCE.

The types of corrective actions available to the government for contractor services not meeting contract requirements are prescribed in FAR 52.246. Examples available to the government range from re-performance of a service, requiring the contractor to develop plans to ensure future contractual conformity, and financial withholding. This above list is not intended to be all inclusive. In the most egregious instances of contractual non-conformity, COs may pursue cure notices and show cause notices. Note, A contractor not meeting a service summary performance threshold during the prescribed performance period is considered a contractual non-conformity; however, failure of a single surveillance, in most instances, is not considered a contractual non- conformity but rather a failure to meet contract performance requirements (i.e. standards/performance thresholds etc.). If inspections indicate unacceptable performance, the QAR/COR will notify the Contractor of the deficiencies for correction. The Contractor shall be given an appropriate time frame (depending on the discrepancy identified) after notification to correct the unacceptable performance. If deficiencies are not corrected within the required time frame, the QAR/COR should notify the PCO for action. If the Contractor disagrees with the noted discrepancy and an agreement cannot be reached, the PCO shall be notified for a final decision.

4.6. Positive and Negative Incentives. IAW the results of the QAR/COR surveillance documentation, areas warranting a change in assessment method, frequency, or performance threshold will be changed in either a positive or negative manner throughout the life of the contract, if warranted.

5. PERFORMANCE MANAGEMENT.

5.1. Market Research. Market research will be used as a tool throughout the life of the contract to remain current with the most efficient and effective assessment methods and techniques of the commercial marketplace.

5.2. MFT Meetings. The MFT will manage the contract for the life of the contract. This team is a partnership between the Government and the Contractor to ensure the best possible service is provided for the life of the contract.

5.2.1. Performance Planning. All performance assessment data will be reviewed at these meetings. If performance improvement is necessary a plan of action will be created.

5.2.2. MFT Goal. The goal of the MFT is to give all members a vested interest in maintaining the highest quality service to our customers and the ability to propose/initiate improvements. The success of the contract is a combined effort of all MFT members.

5.3. Disputes. Attempts will be made to resolve all disputes arising under this plan using the

Alternate Dispute Resolution (ADR) as outlined in FAR 33.214. The objective is mutually agreeable resolutions that are relatively inexpensive and expeditious. If no resolution can be made under

ADR, the PCO shall be notified for a final decision.

5.4. Performance Data Review. The MFT will assess and manage performance data, to include CPAR reports. IAW AFI 63-138, this could include the MFT providing regular performance reports to the

Program Manager (PM) and/or Functional Service Manager (i.e. this is the same as the Functional

Commander/Functional Director) to ensure that performance is compatible with contract objectives.

This information provides the PM and/or FSM with valuable feedback on how well a contractor is performing when it comes time to prepare a CPARS assessment, if applicable.

6. Revisions to this Surveillance Plan. Revisions are the joint responsibility of the ACO, PCO and

QAR/COR. This document can be changed at any time following coordination with the MFT.

REVISION QASP CHANGE ACTIVITY DATE

Original Surveillance Plan for T108 Sustainment Support Apr 7 2020

CORRECTIVE ACTION

REPORT (CAR).docx

Customer Complaint

Form.docx

PERFORMANCE

ASSESSMENT REPORT (PAR).docx